How to Become SEBI Registered Research Analyst? Process, Eligibility Criteria, Documents & Fees
In India, to become a Research Analyst, one must register with the Securities and Exchange Board of India (SEBI). Read the article to know the registration process to become a SEBI Registered Research Analyst. Also, know about the application fee, documents required, and eligibility criteria for the same.
SEBI Registered Research Analyst
Are you passionate about the stock market and love to analyze financial data? If yes, then becoming a SEBI registered research analyst is a great way to turn your passion into a successful career opportunity. In India, the Securities and Exchange Board of India (SEBI) regulates who can officially offer research and investment advice to people. This is done to protect the investors, promote fair activities, and maintain market integrity.
To work as a research analyst and build a career in the financial and investment sector in India, SEBI has made it compulsory for individuals and/or firms to register with them. SEBI registration ensures that only qualified, ethical, and competent professionals provide research services to the public.
Read this article to know who a research analyst is, the importance of registering with SEBI, and the eligibility criteria to become a SEBI authorized professional. Know how to become a SEBI certified Research Analyst.
Yes, a Chartered Accountant (CA) can become a SEBI regsitered research analyst. A CA meets the educational qualification criteria set by SEBI. It include a professional degree in finance, accounting, or other related fields. Besides, a CA can also obtain NISM Series-XV: Research Analyst Certificate.
It is not difficult to become a SEBI registered research analyst. An individual or a firm wanting to obtain the authorization has to follow these steps:
- Meet the educational qualifications and professional experience requirements.
- Pass the NISM Series-XV: Research Analyst Certification Examination.
- Fill out and submit the Application along with the required documents and fees.
- Who is a Research Analyst?
- SEBI Registered Research Analyst Eligibility Criteria
- Documents Required for SEBI Research Analyst Registration
- How to Register as a Research Analyst with SEBI?
Who is a Research Analyst?
A Research Analyst is a financial professional who provides investment recommendations after studying the market trends, company performance, and economic conditions. To provide valid and proper advice, a research analyst collects, analyzes, and interprets the financial data so the investors can make an informed decision regarding the buying, selling, or holding of stocks and other securities.
These analysts usually prepare a detailed report and forecast company earnings to offer valuable insight into the future performance of assets. With the help of a research analyst, an individual or a firm can minimize or mitigate risks and maximize returns. To officially offer research services in India, one must register with SEBI and get proper certification.
Know About: Research Analyst Online Courses & Certifications
Why is it necessary to register with SEBI?
Getting registered with SEBI to become a research analyst is a legal requirement under the SEBI (Research Analyst) Regulations, 2014. Refer to the following points to know its importance for the public:
- SEBI registration ensures that only qualified professionals offer research advice. This reduces the chances of getting misleading information.
- Registered analysts are required to follow SEBI’s guidelines strictly. This promotes honesty and ethical practices.
- Being registered with SEBI helps keep the financial markets transparent and free from any biased research. This helps maintain the integrity of the market.
- As it is mandatory to register under SEBI regulations, individuals or firms cannot legally provide research services to the public without registration.
SEBI Registered Research Analyst Eligibility Criteria
According to the SEBI (Research Analyst) Regulations, 2014, an individual or a firm has to meet certain requirements to become a SEBI registered research analyst. Check out the space below to know the educational, monetary, infrastructural, certifications, and other eligibility criteria:
Educational Qualification
An individual or a firm must have any one of the following:
- A professional qualification, PG degree, or diploma in finance, business management, economics, commerce, accountancy, capital markets, or financial services from:
- A university recognized by the University Grants Commission (UGC) or any other statutory body in India, or
- An institute/association affiliated with such universities, or
- An institute established by the central or state government, or
- An autonomous institute under the administrative control of the Indian Government.
- A qualification accredited by bodies like All India Council for Technical Education (AICTE), National Assessment and Accreditation Council (NAAC), or National Board of Accreditation (NBA).
- A graduate degree in any discipline with at least five years of experience in a field related to financial products, portfolio management, securities, or fund management.
Certifications
According to SEBI, it is mandatory to pass the NISM Series-XV: Research Analyst Certification Examination. Additionally, it is required to keep the certificates valid at all times by timely renewal.
Note: An applicant can apply for renewal of registration three months before expiry.
Infrastructure
The applicants must have adequate infrastructure to perform the duties of a research analyst. These include a proper office space, research software, office equipment, Communication systems, and a structured research process to maintain quality and accuracy.
Fit & Proper Criteria
The applicant must have a clean background. Also, the individual or the firm applying to register as a research analyst must meet the “fit and proper person” standards. These standards are defined by SEBI in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008.
Apart from this, SEBI also checks if the applicant has ever been rejected or penalized by SEBI or other regulators in the past.
Net Worth Requirement
To be eligible to register for a research analyst position, the applicant must meet these requirements:
- For Individuals or Partnership firms: Minimum net tangible asset value of INR 1 lakh.
- For Body Corporates and Limited Liability Partnerships (LLPs): Minimum net worth of INR 25 lakhs
- Applicants must have a net worth certificate issued by a Chartered Accountant, which should not be older than six months at the time of application.
Here, “net worth” is the aggregate value of Paid Up Share Capital + Free Reserves (excluding reserves created out of revaluation) – Accumulated Losses
Other Miscellaneous Requirements
Apart from the above-mentioned major requirements, an applicant must ensure to meet the following eligibility criteria too:
- There must not be any prior application rejected by SEBI without addressing the reasons.
- The applicant must not have any ongoing regulatory or disciplinary action by SEBI or any other authority.
- The applicant must comply with the norms laid down by SEBI related to internal policies, conflict of interest guidelines, and disclosure requirements.
Also Read: NISM Exam
Documents Required for SEBI Research Analyst Registration
The following documents are required to apply for SEBI Registered Research Analyst registration:
- Filled and signed Form A.
- Educational Certificates, including Proof of qualification and NISM certification.
- Experience Certificates (if applicable)
- Net Worth Certificate certified by a Chartered Accountant (not older than six months).
- Identity and Address Proof (individuals, partners, directors, or authorized signatories).
- Details of Office Infrastructure.
- Internal Policies for managing conflicts of interest.
- Income Tax Returns of the last three years (in case of individuals only)
- Declaration confirming fulfillment of SEBI regulated requirements by the applicant, its employees, and partners.
- Application Fee as a demand draft (DD) payable to “Securities and Exchange Board of India.”
How to Register as a Research Analyst with SEBI?
Know the steps to become a SEBI Registered Research Analyst from the space below:
- Before applying to become a SEBI-registered research analyst, ensure to meet all SEBI eligibility requirements, including: Educational Qualification, Valid NISM Series-XV: Research Analyst Certification, Minimum Net Worth, Adequate Infrastructure to carry out research activities, and Compliance with SEBI’s “fit and proper person” standards.
- The second step is to pass the mandatory NISM Series-XV: Research Analyst Certification Examination and ensure that a valid certificate is obtained at any given point.
- The next step is to fill in Form A as prescribed in the SEBI (Research Analyst) Regulations, 2014, by entering all required information accurately and attaching the mandatory documents. Now, pay the non-refundable application fee to ‘The Securities and Exchange Board of India’ via a demand draft. The following is the application fee for registration:
| Particulars | Application Fee |
|---|---|
| Individuals and Partnership Firms | INR 5,000 |
| Body Corporates and LLPs | INR 50,000 |
- The next step is to submit the application along with the supporting documents and fees to the SEBI Head Office or the relevant regional/local office based on the applicant’s registered address. Once SEBI receives the application form, fee, and documents, it will carefully review everything. If SEBI approves the application, the applicant must pay the registration fee of:
| Particulars | Registration Fee |
|---|---|
| Individuals and Partnership Firms | INR 10,000 |
| Body Corporates and LLPs | INR 5,00,000 |
- After the applicant pays the registration fee, SEBI will grant a Certificate of Registration as a Research Analyst. The certificate will be valid for five years.
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To become a SEBI authorized research analyst, applicants have to pay fees two times: Application Fee and Registration Fee as follows: